Tax saving investment help needed

POSTED BY satish ON December 28, 2011 11:58 am COMMENTS (4)

Hi Friends,

I’m new to investment and financial planning.
My package is 5 lac p.a. I just realized as i need to show around 1 lac as investments to avoid tax deductions, if not i need to pay minimum 16000 in my salary now.

Please suggest me any solution,
Note: I can invest up-to 50k,that too with credit card only now.

4 replies on this article “Tax saving investment help needed”

  1. Dear Satish, your query indicates that you are short on funds. In this case, please do not opt for tax saving. As rightly pointed out by dear thezionview. But treat this situation as a wake up call for you. Pay 16K Tax this year but start planning from now that how ‘ll you save & invest for next FY. Yes in case you get some cash between now & 31st march 2012 before closure of this FY, you may opt to invest for tax saving. In cae you are able to save but unable to report the same to your employer, you may claim your tax saving in your Income Tax Return filing next year in May – June 2012. You ‘ll get excess tax as refund.



  2. TheZionView says:


    If the only option for you to pay for investment is through credit card.My first suggestion would be to pay the 16K tax instead of investing using credit card

    Please remember the interest you pay for Credit card is 30-36%pa after the 45-60 days time period .which is not worth the tax that you are going to save.

    You have about 3 months before the financial year completes.

    If you have EPF currently with your company that can be deducted for tax saving under 80c .

    Start a PPF account invest as much as you can spare in coming months salary before march 31st to save tax.

    “Don’t use your credit card to save tax”

  3. Narasimha says:

    I feel the options are less if you want to use credit card.

  4. Parag Shah says:

    Dear Satish,

    1) If You don’t purchase Term Plan; Then purchase a term Plan; for 50 Lac SA Insurance compines will offer 5000-6000 Premium P.A. (U may pay for Aviva, HDFC, ICICI through Credit Card)

    2) Now only 3 month are left in u r hands. In next FY If DTC will applicable then ELSS will not get Tax benifit from Apr-2012. So rather than Start the SIP u may invest 36 K in ELSS Mutual fund through lumpsum or in three slabs. i.e. 12000 Jan, 12000 Feb, 12000 Mar.
    If u purchase ELSS through Online then u can pay by Credit Card.
    (Godd ELSS option r HDFC Tax Saver, ICICI Pru. Tax Plan, Canara Robeco Eqt. Tax Saver.)

    3) If u don’t open PPF account then open an account. Remaining amount u may invest in PPF. (Current Rates are 8.6%). But I think so u can’t pay by Credit card for PPF.


    Parag Shah

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